Haitao Li, Chunchi Wu and Jian Shi
The purpose of this paper is to estimate the effects of liquidity on corporate bond spreads.
Abstract
Purpose
The purpose of this paper is to estimate the effects of liquidity on corporate bond spreads.
Design/methodology/approach
Using a systematic liquidity factor extracted from the yield spreads between on- and off-the-run Treasury issues as a state variable, the authors jointly estimate the default and liquidity spreads from corporate bond prices.
Findings
The authors find that the liquidity factor is strongly related to conventional liquidity measures such as bid-ask spread, volume, order imbalance, and depth. Empirical evidence shows that the liquidity component of corporate bond yield spreads is sizable and increases with maturity and credit risk. On average the liquidity spread accounts for about 25 percent of the spread for investment-grade bonds and one-third of the spread for speculative-grade bonds.
Research limitations/implications
The results show that a significant part of corporate bond spreads are due to liquidity, which implies that it is not necessary for credit risk to explain the entire corporate bond spread.
Practical implications
The results show that returns from investments in corporate bonds represent compensations for bearing both credit and liquidity risks.
Originality/value
It is a novel approach to extract a liquidity factor from on- and off-the-run Treasury issues and use it to disentangle liquidity and credit spreads for corporate bonds.
Details
Keywords
Timothy J. Coogan and David O. Kazmer
The purpose of this paper is to present a diffusion-controlled healing model for predicting fused deposition modeling (FDM) bond strength between layers (z-axis strength).
Abstract
Purpose
The purpose of this paper is to present a diffusion-controlled healing model for predicting fused deposition modeling (FDM) bond strength between layers (z-axis strength).
Design/methodology/approach
Diffusion across layers of an FDM part was predicted based on a one-dimensional transient heat analysis of the interlayer interface using a temperature-dependent diffusion model determined from rheological data. Integrating the diffusion coefficient across the temperature history with respect to time provided the total diffusion used to predict the bond strength, which was compared to the measured bond strength of hollow acrylonitrile butadiene styr (ABS) boxes printed at various processing conditions.
Findings
The simulated bond strengths predicted the measured bond strengths with a coefficient of determination of 0.795. The total diffusion between FDM layers was shown to be a strong determinant of bond strength and can be similarly applied for other materials.
Research limitations/implications
Results and analysis from this paper should be used to accurately model and predict bond strength. Such models are useful for FDM part design and process control.
Originality/value
This paper is the first work that has predicted the amount of polymer diffusion that occurs across FDM layers during the printing process, using only rheological material properties and processing parameters.
Details
Keywords
Syed Alamdar Ali Shah, Raditya Sukmana and Bayu Arie Fianto
The purpose of this research is to propose a framework for research on Macaulay duration and establish future research directions.
Abstract
Purpose
The purpose of this research is to propose a framework for research on Macaulay duration and establish future research directions.
Design/methodology/approach
Thematic, bibliometric and content analyses have been used to review 168 research papers published between 1938 and 2019 taken from ISI Web of Science and Scopus contributed by leading authors, journals and regulatory bodies.
Findings
Identification and integration of themes of duration theory, duration model development and duration model implementation leading to unattended research gaps, and framework for research on Macaulay duration.
Research limitations/implications
The study is based on an extensive review of the literature to extract important themes, research gaps and frameworks. It does not empirically investigate significance of Macaulay duration and various sectors.
Practical implications
This research has several aspects that are helpful for practitioners. Macaulay duration has been the subject of empirical research only without any guiding framework. This research provides a platform to initiate profound researches in various areas of finance. Various proposed models are required to be tested under holistic approach in conventional and emerging fields, especially in Islamic settings.
Originality/value
This research highlights, research themes leading to framework, research gaps and factors that are crucial in developing, extending and testing duration models leading to enhancement of theoretical base of Macaulay duration.
Details
Keywords
Ge Li, Qiushi Kang, Fanfan Niu and Chenxi Wang
Bumpless Cu/SiO2 hybrid bonding, which this paper aims to, is a key technology of three-dimensional (3D) high-density integration to promote the integrated circuits industry’s…
Abstract
Purpose
Bumpless Cu/SiO2 hybrid bonding, which this paper aims to, is a key technology of three-dimensional (3D) high-density integration to promote the integrated circuits industry’s continuous development, which achieves the stacks of chips vertically connected via through-silicon via. Surface-activated bonding (SAB) and thermal-compression bonding (TCB) are used, but both have some shortcomings. The SAB method is overdemanding in the bonding environment, and the TCB method requires a high temperature to remove copper oxide from surfaces, which increases the thermal budget and grossly damages the fine-pitch device.
Design/methodology/approach
In this review, methods to prevent and remove copper oxidation in the whole bonding process for a lower bonding temperature, such as wet treatment, plasma surface activation, nanotwinned copper and the metal passivation layer, are investigated.
Findings
The cooperative bonding method combining wet treatment and plasma activation shows outstanding technological superiority without the high cost and additional necessity of copper passivation in manufacture. Cu/SiO2 hybrid bonding has great potential to effectively enhance the integration density in future 3D packaging for artificial intelligence, the internet of things and other high-density chips.
Originality/value
To achieve heterogeneous bonding at a lower temperature, the SAB method, chemical treatment and the plasma-assisted bonding method (based on TCB) are used, and surface-enhanced measurements such as nanotwinned copper and the metal passivation layer are also applied to prevent surface copper oxide.
Details
Keywords
Sudip Datta and Mai Iskandar‐Datta
The purpose of this paper is to extend the current literature on corporate asset writedowns.
Abstract
Purpose
The purpose of this paper is to extend the current literature on corporate asset writedowns.
Design/methodology/approach
The paper explains the anomalous price responses to asset writedowns by examining both stock and bond price responses. It applies bond and stock event study methodologies using daily prices. Firms are analyzed by partitioning them according to their financial viability. This analysis is based on the logic that it is more difficult to assess the prospects of firms in financial difficulty from publicly available information.
Findings
The study reveals that while asset writedowns have no information content for stockholders of healthy firms, stockholders of financial distressed firms suffer a significant adverse effect. This differential stock price reaction provides an explanation for the anomalous results reported in previous studies. Similar price responses are found for bondholders. The results indicate that the market interprets an asset writedown announcement by a financially distressed firm as a strong negative signal about the firm's prospects. It is also found that the firm's financial health, the subordination status of the bond, the bond's maturity, the bond rating, the amount of the write‐off undertaken by a firm in distress, and the leverage change experienced by the firm are all important determinants to bond price response. Long‐run analysis reveals significant differences in performance and leverage change between healthy and financially distressed firms undertaking asset writedowns.
Practical implications
The paper resolves the anomalous results on information content of corporate asset writedown announcements on stockholders and bondholders. Broadly, the findings have important implications for both finance and accounting literatures in terms of semi‐strong market efficiency and security market signaling issues and the importance of considering financial viability of firms when testing market efficiency in the presence of publicly available information.
Originality/value
This is the first study to address this issue by examining the information content of asset writedown announcements for both stockholders and bondholders. Past studies document a significant negative stock price response to asset writedown announcements, while there is no bond price response to such official acknowledgment of asset impairment.
Details
Keywords
This paper identifies the “idiosyncratic basis”, the residual premia computed from stripping away the hypothetical cross-currency basis (CCB) from the cross-currency credit spread…
Abstract
This paper identifies the “idiosyncratic basis”, the residual premia computed from stripping away the hypothetical cross-currency basis (CCB) from the cross-currency credit spread (CCCS) of eligible senior corporate dollar-denominated bonds relative to their hypothetical euro-denominated comparator of identical seniority, duration, credit risk and issuer. The adherence of the idiosyncratic basis to the no-arbitrage condition is subsequently evaluated through the application of an indicative market-neutral credit strategy that is designed to harvest the apparent static arbitrage opportunities. The success of the strategy, which systematically captures the idiosyncratic basis as it adheres to the no-arbitrage conditions, is validated retrospectively to frame the basis as an additional class of alternative risk premia (ARP), which investors can seek to optimise exposure to in a long-only context.
Details
Keywords
J. Eldring, E. Zakel and H. Reichl
Ball‐bumping is a flexible low cost bumping technology based on the conventional wire bonding procedure. It is applicable to single chips or whole wafers as well as to substrates…
Abstract
Ball‐bumping is a flexible low cost bumping technology based on the conventional wire bonding procedure. It is applicable to single chips or whole wafers as well as to substrates. As established wire‐bonding machines can be used, expensive bumping‐process equipment for phototooling and plating is not necessary. Flip‐chip bonding is the most advantageous attach method of high frequency applications. Compared with wire‐bonding and TAB it allows the highest contact density, the shortest signal paths and lowest interconnection parasitics. The reduced pad sizes and pitches, not only of GaAs devices, demand a well controlled bump deformation during flip‐chip bonding. This work develops process parameters for the flip‐chip bonding of silicon and GaAs devices with respect to the best interconnection result by lowest bonding force and ball‐bump deformation. Ball‐bumps with diameters of 50 and 80 urn (2.0 and 3.2 mils) were created using 98% AuPd bump wire with diameters of 18 µm (0.7 mil) and 25 µm (1.0 mil) respectively. Ball‐bumping with a minimal pitch of 70 µm (2.8 mils) has been achieved. A special preparation allowed the shear test investigation of each bump/pad interface after flip‐chip attach. Bonding forces of 20 and 25 cN/bump respectively lead to a good welding in the bump/substrate interface due to the special shape of ball‐bumps. For silicon devices which have a pad metallisation of aluminium, the shear forces of the bump/pad interface increase after flip‐chip bonding, too. No cratering of GaAs and silicon occurs after flip‐chip bonding due to a low bonding force ramp of 5 cN/s and 10 cN/s respectively. The flip‐chip attach of a Fujitsu FLR 016 GaAs‐FET which has pad sizes of 35 urn is demonstrated. In this case, substrate bumping is the more advantageous bumping method. The feasibility of fine‐pitch TAB attach using ball‐bumps is introduced. 100 µm (3.9 mils) pitch silicon devices with 328 pads were ball‐bumped for both solder and thermal‐compression TAB. Bond forces were in the range of 9–11 cN/bump and 15–21 cN/bump respectively. Pull forces of approximately 30 cN/lead show good results of the bump/lead interconnection after TAB.
An important disadvantage of conducting adhesives is their inferior heat conductivity when compared with soft solder such as Sn60Pb40. Thermal simulations, however, show that, by…
Abstract
An important disadvantage of conducting adhesives is their inferior heat conductivity when compared with soft solder such as Sn60Pb40. Thermal simulations, however, show that, by using thinner layers of adhesive than of solder, the module's thermal resistance does not increase greatly. Test modules with four different silver filled epoxy adhesives and tin/lead solder were manufactured. These test modules contained power diodes, 30 A, 1000 V, die bonded onto Ag/Pt thick film conductors on alumina. The die bond adhesive layer thicknesses were typically 30 or 40 μm. For die bond solder layers the thickness was 90 μm. The alumina substrates were connected to 3 mm thick copper plates with filled epoxy or silicone adhesive. The thickness of these layers was 150 μm or 50 μm, respectively. Thermal resistance of the structures was measured. The results showed that good adhesion between joined surfaces is essential for optimised heat flow. The heat conductivity of an adhesive was only a secondary factor affecting the structure's thermal resistance. When the adhesive joint is of good quality, the replacement of solder with conductive adhesives does not increase the module's thermal resistance any more than as shown by the simulations. It should, however, be remembered that the printing of thin (< 20 μm) uniform layers is not always possible.
This chapter presents an approach to teaching bond liabilities and investments in the typical undergraduate Intermediate Accounting II course, using the statement of cash flows…
Abstract
This chapter presents an approach to teaching bond liabilities and investments in the typical undergraduate Intermediate Accounting II course, using the statement of cash flows, including both indirect and direct approaches. From the perspectives of the issuer and holder, emphasis is placed on journal entries reflecting interest accruals, amortization of discounts and premiums, and early extinguishment of such financial instruments, as well as the treatments of such entries in the statement of cash flows. Students are expected to explain the reasons underlying such treatments. The results of this innovation suggest that students enhance their understanding of accounting for bonds and the statement of cash flows by application of this approach.